Finance Minister Edwina Hart has welcomed news that Wales is to get extra funding from the Chancellor of the Exchequer.

Addressing the Welsh Assembly on Tuesday, Mrs Hart said she was delighted that additional cash had been awarded by Gordon Brown.

The money awarded is on top of that normally provided through the Barnett Formula - the system used to decide spending per person in Wales.

Paul Murphy: "Up to the assembly"

On Monday, Mr Brown unveiled plans to increase the assembly's budget by more than 5.1% a year to reach almost �11.8bn by 2006.

The Chancellor's spending review had been welcomed by First Minister Rhodri Morgan, who said it was an incredibly important day for the assembly.

While the assembly's own budget will not be revealed until the autumn, Ms Hart used her speech to outline what the next steps in using this money will be.

In the review, the Chancellor made almost �500m available during the next three years to ensure the assembly can draw down European grants for the poorest parts of Wales.

Regeneration

Analysts had expected the Chancellor to refuse to offer this funding for Objective One projects.

Mr Morgan said the money would mean that regeneration projects could continue without other budgets being raided.

While not wishing to say too much before the assembly's own budget was revealed in the autumn, Mr Morgan said the money would be spent on frontline services.

The assembly's budget is set by the Barnett formula, which links investment in Wales to spending in Whitehall departments.

"Very pleased"

Secretary of State for Wales Paul Murphy said the settlement - which would hand out �10.3bn in 2003/4 and �10.9bn in 2004/5 - was excellent for Wales.

"I am very pleased that the increased spending, announced by the Chancellor, will mean that the assembly's budget will increase to �11.8bn for 2005-06," said Mr Murphy.

"It is now for the Welsh Assembly to translate this into the best possible public services for the people of Wales."

Across the UK, Mr Brown has earmarked an extra �90bn for public spending over the next three years.

"Sold short"

But Plaid Cymru Treasury Spokesman Elfyn Llwyd MP described the spending review as "very disappointing".

Mr Llwyd said that, despite the 5.1% increase, Wales had been sold short.

"Once again we have got to raid the meagre budget to match European Objective 1 funding," he said.

The government conducted a comprehensive review of public services in 1998, and followed it up with another in 2000, which set targets and allocated resources for the three years to 2003-4.

The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.